Use Computer Software to Obtain the Multiple Regression Equation and Identify

question 159

Multiple Choice

Use computer software to obtain the multiple regression equation and identify R $$\mathrm { R } ^ { 2 }$$ , adjusted R $$\mathrm { R } ^ { 2 }$$ , and the P-value.
-A wildlife analyst gathered the data in the table to develop an equation to predict the weights of bears. He used WEIGHT as the dependent variable and CHEST, LENGTH, and SEX as the independent variables. For SEX, he
Used male=1 and female=2. $$\begin{array} { | c c c c | } \hline \text { WEIGHT } & \text { CHEST } & \text { LENGTH } & \text { SEX } \\\hline 344 & 45.0 & 67.5 & 1 \\416 & 54.0 & 72.0 & 1 \\220 & 41.0 & 70.0 & 2 \\360 & 49.0 & 68.5 & 1 \\332 & 44.0 & 73.0 & 1 \\140 & 32.0 & 63.0 & 2 \\436 & 48.0 & 72.0 & 1 \\132 & 33.0 & 61.0 & 2 \\356 & 48.0 & 64.0 & 2 \\150 & 35.0 & 59.0 & 1 \\202 & 40.0 & 63.0 & 2 \\365 & 50.0 & 70.5 & 1 \\\hline\end{array}$$

• A) 0.971, 0.723, 0.000
• B) 0.891, 0.926, 0.003
• C) 0.725, 0.961, 0.014
• D) 0.927, 0.900, 0.000

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Definitions:

After-Tax Cash Savings

The increase in cash flow that results after all applicable taxes have been deducted from the gross income.

Cost of Capital

The rate of return that a business must earn before generating value, taking into account the cost of funding the business through equity or debt.

Capital Structure

The combination of a corporation's long-term obligations, particular short-term liabilities, common stock, and preferred shares, employed to fund its general activities and expansion.

Net Present Value

A calculation used to determine the value of a future stream of income or expenses discounted back to the present value.